When Should You Get Disaster Insurance?

Disaster insurance is something that we rarely think of until a disaster strikes. If you do not have it, you likely will not be covered by your homeowners insurance in the event of a disaster. How do you decide if disaster insurance is necessary?

Flood Insurance

Many people believe that if their house flooded, they would be covered by their homeowners policy. This is simply not the case. Unless the flood was the result of a broken water line in the house, it will not be covered. This requires a separate flood insurance policy. Most of the time, it is a good idea to get a flood insurance policy. Approximately one in four houses ends up flooding at some point. Many of those houses are not in areas that experience frequent flooding. Unless you live on the top of a mountain, it is probably a good idea to have flood insurance. 

Earthquake Insurance

There are only a few insurance companies that will write earthquake policies. If you live in California, you can actually deal with the California earthquake authority. This is like a special organization that helps people obtain coverage in the event of an earthquake.

Wild Fires

Wild fires is one thing that may be covered by homeowners insurance. If you live in a developed area, it will most likely be covered. If you are in a rural area out in the woods, you will probably need to buy fire insurance. 

 

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